Many Louisiana business owners have big aspirations when they start their businesses. While these plans sometimes come to fruition, they may not always last. When a company finds itself losing more money than it is bringing in, owners must make difficult decisions regarding their finances. For many, Chapter 11 bankruptcy may be the best solution. According to recent reports, Payless is planning to soon take this step and file for bankruptcy.
Payless, a nationwide discount shoe retailer, has more than 4,000 stores across the United States and 30 other countries with nearly 22,000 employees. To prepare for the upcoming bankruptcy plans, the company originally planned to close up to 1,000 stores across the country. Currently, the number expected to be closed is around 500 stores. Louisiana is home to 30 Payless stores, though no word on whether any of those stores are included in the closures.
According to news reports, many more consumers are choosing to purchase products from online retailers rather than from brick and mortar stores. This is likely one of the reasons Payless owners are making the decision to file. Filing for Chapter 11 bankruptcy will allow Payless to restructure their company to more easily pay back their creditors. This will also let the business continue to operate throughout the bankruptcy process.
Any Louisiana business owners who believe their business is in financial trouble may want to consider learning more about their options. Chapter 11 bankruptcy might be the best solution for those facing significant debt. An experienced bankruptcy attorney could give advice and support to business owners looking to bring financial stability back to their companies.
Source: nola.com, "Payless to file for bankruptcy, close 500 stores: report", Jennifer Larino, March 27, 2017